The brokerage firm of E. F. Hutton was charged with federal criminal violations of interstate funds transfers. In reviewing the case, the lawyers for the government discovered internal memoranda from and between branch managers in several states that outline a process for check kiting (a literal stringing together of checks and deposits) that enabled E. F. Hutton to earn interest on phantom deposits. Where will the case be tried? Which court system? Which court? Why?

What are the lawyers’ obligations with respect to the documents? What is the company’s obligation? If you were a manager at E. F. Hutton, would you voluntarily disclose the documents to the government?